Summary:
- Pipeline steady at 6,205 projects and 728,416 rooms.
- Extended-stay hotels represent 40 percent of projects.
- Brand conversions hit a record 1,477 projects.
THE U.S. HOTEL construction pipeline held steady year-over-year in the third quarter, according to Lodging Econometrics. It comprises 6,205 projects with 728,416 rooms—unchanged in project count and up 1 percent in rooms from last year.
LE’s “Q3 2025 U.S. Hotel Construction Pipeline Trend Report” found that extended-stay hotels remain a key driver of development, representing 40 percent of projects and 34 percent of rooms.
There were 2,468 extended-stay projects totaling 250,754 rooms, LE reported. Of these, 431 projects with 45,542 rooms are under construction, 983 projects with 102,064 rooms are expected to break ground within 12 months and 1,054 projects with 103,148 rooms remain in early planning.
By chain scale, upper midscale leads with 2,279 projects and 219,385 rooms, followed by upscale with 1,383 projects and 172,238 rooms. Together, they account for 59 percent of the total pipeline. Midscale development grew slightly to 947 projects and 78,956 rooms, up 2 percent year-over-year.
Brand conversion activity reached a record level—1,477 projects with 148,035 rooms, up 18 percent in projects and 22 percent in rooms from last year. Combined renovation and conversion activity totals 2,043 projects with 271,177 rooms. New project announcements reached 230 projects with 28,951 rooms during the quarter. In terms of new supply, 490 hotels with 57,479 rooms opened through the third quarter.
Looking ahead, LE analysts anticipate 202 hotels with 22,368 rooms to open by year-end 2025, bringing the year’s total to 692 openings with 79,847 rooms—a 1.4 percent growth rate. The firm forecasts 754 openings in 2026 and 864 in 2027.
LE also reported that Dallas led the U.S. hotel construction pipeline at the close of the third quarter with 197 projects and 24,310 rooms. Nationwide, renovations and brand conversions total 2,043 projects with 271,177 rooms.
